15-0702 v2.X End of Term Purchase of PV Array
We are planning to fund our solar installation through a power purchase agreement (PPA) that engages a third-party investor. Our situation is similar to dialog post 2754, but with an important difference on which we would like to receive guidance to ensure our action will be consistent with the imperative. Our contract will provide us with the "option" to purchase the system outright at the end of a 13-year PPA term. We will not become the owner by default. Is this considered acceptable? If not, could we comply with the imperative by amending our contract such that at the end of the original term, we agree to either extend the agreement for 2 additional years (I07-E2 10/2010) or purchase the system (DP 2754)?This project is under v2.0.
It is acceptable for the project team to have the option to either purchase the PV array or extend the lease to meet the 15 year minimum under I07-E2 Photovoltaic (PV) Array Ownership in the Nov. 2013 v2.1 Energy Petal Handbook (EnPH p 6). A 13 year lease with only an option to buy does not meet the requirements.
Post ID 3018